Institutional investor Operating Engineers Construction Industry Miscellaneous Pension Fundfiled a class action lawsuit today against MGP Ingredients, Inc. (NASDAQ:MGPI) (“MGPI” or the “Company”), David Colo, David S. Bratcher, and Brandon M. Gall, alleging they defrauded investors by issuing false and misleading statements concerning the state of MGPI’s business and financial results with regards to selling hard spirits and overstocking products.
The suit, brought in federal court in the United States District Court for the Southern District of New York was filed by leading investor law firm Grant & Eisenhofer P.A.
The action is brought on behalf of all persons or entities who purchased or acquired MGPI common stock between May 4, 2023 through October 30, 2024, inclusive (the “Class Period”). The action is captioned Operating Engineers Construction Industry Miscellaneous Pension Fundv. MGP Ingredients, Inc., David Colo, David S. Bratcher, and Brandon M. Gall, No. 1:24-cv-09685 (S.D.N.Y.).
The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, MGPI is a manufacturer of hard liquors such as tequila, bourbon, rye, whiskey, vodka, and gin. MGPI sells the spirits it produces under its own brands as well as to other alcohol distributors and brands. Prior to the Class Period, sales of hard liquors, such as those produced and sold by MGPI, increased dramatically in the wake of COVID-19. However, as quarantines ended, sales of hard liquors slowed across the alcoholic beverage industry, and a backlog of inventory began to increase. During the Class Period, MGPI falsely assured investors that its projections and statements accounted for the industry slowdown and that it was well-positioned to avoid a buildup of inventory. The Company also incorrectly claimed that its projected sales took these industry trends into account.
The market was thus shocked when MGPI announced on October 17, 2024, that a slowdown in demand and an excess in inventories would undermine sales. This revelation caused the Company’s stock to plummet 29.5%. Then, less than two weeks later, on October 31, 2024, Defendants revealed that its excess inventory would have an even greater impact than previously reported. This caused the Company’s stock to drop another 14.7%, to a close of $49.04 per share on October 31, 2024. In total, MGPI’s share price declined nearly 50% on these two disclosures, wiping out hundreds of millions of dollars in market capitalization and damaging investors.
Investors who purchased or acquired MGPI common stock during the Class Period are members of this proposed Class and may be able to seek appointment as lead plaintiff, which is a court-appointed representative for the Class, by complying with the relevant provisions for the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). See 15 U.S.C. Section 78u-4(a)(2)(A)(i)-(iv). If you wish to serve as lead plaintiff, you must move the Court by no later than February 14, 2025, which is lead plaintiff deadline that was established by publication of this notice on December 16, 2024. You do not need seek to become a lead plaintiff in order to share in any possible recovery. You may also retain counsel of your choice to represent you in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights, please contact Caitlin M. Moyna at Grant & Eisenhofer at 646-722-8513, or via email at [email protected]. You can also find more information at gelaw.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241216321169/en/
